Convergys profit beats; realigns top management
REUTERS - Business process outsourcing provider Covergys Corp reported first-quarter results that trumped Wall Street estimates and said Chief Operating Officer Andrea Ayers will become the CEO as Jeffrey Fox assumes the role of executive chairman.
The company also said CFO Earl Shanks, who has been with the company for the last eight years, will quit. Andre Valentine, who had earlier worked as a senior vice-president and controller, will replace Shanks.
The management changes will be effective in the third and fourth quarters, the company said.
Convergys expects its customer management business, in which it handles billings and client service management, to generate revenue of $1.975 billion to $2 billion this year.
It had earlier said it expected the segment's revenue to exceed $1.96 billion.
The company, however, cut its full-year adjusted earnings outlook to 75 cents to 80 cents per share, from 95 cents to $1.00. Analysts on average were expecting 77 cents per share.
January-March net income fell to $26.1 million, or 22 cents per share, from $34.9 million, or 28 cents per share, a year earlier.
Income from continuing operations was 18 cents per share on revenue of $498 million, said the company, which competes with Amdocs DOX.N and Comverse Technology Inc CMVT.O.
Analysts on average had expected 15 cents per share on revenue of $475.6 million, according to Thomson Reuters I/B/E/S.
Shares of the Cincinnati, Ohio-based company closed at $13.03 on Tuesday on the New York Stock Exchange. (Reporting by Siddharth Cavale in Bangalore; Editing by Don Sebastian)
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